WEALTH TAX OFFICER Vs. ASHOK RAJE GAEKWAD HUF
LAWS(IT)-1989-1-4
INCOME TAX APPELLATE TRIBUNAL
Decided on January 17,1989

Appellant
VERSUS
Respondents

JUDGEMENT

M.A.A. Khan, Judicial Member - (1.)IN these appeals by revenue against the same assessee, a HUF, the dispute relates to the justification in the claim of the assessee for benefit of Section 7(4) of the Wealth-tax Act, 1957 (the Act) in respect of a house property known as "Dhairya Prasad". The Wealth-tax Officer rejected the assessee's claim on the grounds mentioned in his order but in appeal the learned CWT(A) found the assessee entitled to the benefit of Section 7(4). Hence these appeals which we propose to dispose of by this common order.
(2.)The property in question "Dhairya Prasad" is situated opposite to Lalbaug Railway Crossing Road, Pratapnagar, Baroda along the road in front of Shreyas High School. It is a free hold property having a total land area of 40327.25 sq. ft. The actual constructed area on the ground floor is 10,916 sq. ft. and on the other floors 21,644 sq. ft. This property was constructed in or about 1925 with load bearing structure and comprises of ground floor and first and second floors besides basement. The basement has smooth line plastered walls, with rough kotah stone flooring. The ground floor has mosaic tiles and marble flooring. The first and second floors have wooden flooring. Staircase has marble floor with marble hand rails and marble belluctere. The building has stone facing with architectural features, doors and windows of teak wood, panelled and glazed respectively. The dining room has plaster of paris ceiling. Fittings are of superior brass type. Water supply arrangement and sanitary fittings are also there. Electric wiring is of surface type. The building has a 3450 liter capacity terrace tank and drainage is duly connected with municipality sewerage. Under a "sanad" dated 17th August, 1942, the present assessee got this building by transfer from the ex-ruler of erstwhile State of Baroda.
For the assessment year 1979-80 the assessee filed the returns of its wealth on August 23, 1979 showing this property as a farm house and valuing the same at Rs. 5,67,675 and also claiming exemption u/s 5(l)(iv) of the Act. The WTO passed an assessment order under Section 16(3) of the Act on February 26, 1983 valuing the property at Rs. 10,90,403. The assessment order was, however, set aside by the CWT(A) on 21-7-1983 with a direction to the WTO to take the valuation of the property after making a reference to the Valuation Cell.

(3.)FOR assessment year 1980-81, the return was filed on 9-7-1981 valuing the property at Rs. 5,67,675. Later on the assessee filed a revised return on 16-3-1985 claiming therein the benefit of Section 7(4) on the valuation of the. property at Rs. 2,70,000 as per valuer's report.


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